There are too many mixed messages on bank failure rules

Regulators must do more to convince investors they will not be subjected to moving regulatory goal posts and unpredictable, politically expedient decisions

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By

Tim Skeet

February 15, 2018 Updated: 7:57 a.m. GMT

One might have hoped everything would be clear by now. It is more than 10 years since the failure of the UK mortgage lender Northern Rock marked the beginning to Europe’s financial crisis. But when it comes to saving failing banks, Europe’s regulators have managed to send out a number of contradictory and conflicting messages.

With the EU’s Banking Recovery and Resolution Directive (BRRD) in force, and the Single Resolution Board (SRB) in place, the post-crisis machinery was ready to clarify these situations a year ago. But...